US: The 2023 edition of The Boutique Hotel Report, published by The Highland Group, reveals that rate increases have pushed most boutique hotels to full RevPAR recovery.
The annual report covers the independent boutique, lifestyle hotel and soft brand collection segments in the United States.
Boutique hotel groupings averaged 58 to 65 per cent occupancy in 2022. This is compared to all US hotels at 63 per cent occupancy.
Whilst occupancy levels have not fully returned to 2019 levels, strong rate increases compared to the previous year have enabled most class groups to achieve RevPAR recovery. The independent boutique luxury class has achieved a $40 premium in RevPAR in 2022 compared to 2019.
Rate increases in boutiques ranged from 12 to 24 per cent compared to the previous year. All US hotels averaged a 19 per cent increase in rate in 2022 according to STR.
Kim Bardoul, partner at The Highland Group, said: “The boutique hotel that combines overnight accommodation with the intrigue of design, story, local relevancy, and interesting amenities tends to attract loyalty and a good rate premium. Continued popularity and strong rate increases position this product very well for future growth.”
Over the past five years, independent boutiques have increased in supply at a compound annual average of six per cent, followed by lifestyle hotels at 11 per cent. At 18 per cent annually, soft brand collections increased hotel rooms at the fastest pace since 2017.
To view The Boutique Hotel Report 2023 in full, click here. It includes:
• Definitions of lifestyle, soft brand collections and independent boutique hotels.
• Revenues by class in 2022 compared to US hotels.
• Commentary on RevPAR recovery to 2019 by class.
• Operating performance by class for each boutique segment including occupancy, ADR, supply, and demand from 2015 through 2022.
• Detail of room distribution by property size, class, and, where applicable, brand.
• Change in US market share from 2010 by segment.
• Distribution analysis throughout the 100 largest MSA’s indicating opportunity for boutique hotel development.
• Three aggregate “HOST” style statements of 2021 income and expense for each segment. The Highland Group’s Mid-Year Boutique Report will present 2022 calendar year data.
• Comparison of each segment’s 2021 RevPAR, F&B, TRevPAR, and EBITDA compared to US full-service hotels.
• Two aggregate “HOST” style statements of 2022 income and expense for boutique hotels with rooftop bars and high F&B revenues.